OPINION: From Safe Haven to Security Threat: Wealthy Russian UK Citizens

It is no secret that the UK and especially London, is a haven for many Russian oligarchs and politicians. Many have acquired property, obtained citizenship and sent their children to British schools and universities.

Even after Russia’s large-scale invasion of Ukraine, this trend continues, although some have been placed on the sanctions list – their family members can enjoy ill-gotten wealth in the clubs of the British capital. However, the UK may have already set a precedent for the expulsion of such individuals from its territory.

British citizenship not only provides a safe haven when things get dicey in Russia, or bragging rights in the Duma bar, but also a degree of security to hide ill-gotten wealth from a notoriously corrupt state. British citizens in the UK also have access to various financial instruments that are less accessible to foreign nationals. They can more easily set up trusts and other estate planning instruments in the UK that offer tax efficiency and asset protection. They can also more easily obtain mortgages and loans on more favorable terms due to their residency status and credit rating. Certain investment options, such as Individual Savings Accounts (ISAs), are only available to UK residents and offer tax advantages that foreign nationals cannot benefit from. Although these services are not essential for an ultra-rich Russian, the UK financial system offers another aspect that makes a British passport highly desirable.

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When conducting financial business in the UK, British nationals are generally spared the stringent checks and controls that apply to foreign nationals. British nationals do not face the same regulatory hurdles and additional documentation requirements that non-residents must meet. For example, foreign nationals often have to undergo enhanced due diligence, which includes detailed background checks and extensive evidence of the source of funds. These measures are part of the Anti-Money Laundering (AML) regulations, which aim to prevent illegal activity. British citizens with proven creditworthiness and legal residency generally have an easier time with financial transactions, be it opening bank accounts, applying for loans or buying property. All these advantages are much appreciated by those Russians who want to hide their wealth and can use it to Britain’s disadvantage at Putin’s command.

Russian involvement in UK politics is evident through funding and support given to the Conservative Party, financial and personal links with far-right parties and groups like Reform UK and the English Defence League, and media enterprise purchases, such as the Evening Standard. It would be natural for the UK to desire cleansing from this influence, potentially starting with the removal of UK citizenship from those able to manipulate politics and media in ways counter to British national interests and harmful to national security.

Possibly unwittingly, and arguably in a bid to shore up its right-wing support base, the previous Conservative government provided a precedent by effectively making a once-UK citizen stateless. Shamima Begum was a UK-born British citizen to Bangladeshi parents. After leaving the UK in 2015 at age 15 to join ISIS in Syria, she married an ISIS fighter. In 2019, she was found in a Syrian refugee camp and sought to return to the UK. In February 2019, Home Secretary Sajid Javid revoked Begum’s UK citizenship on national security grounds, claiming she held dual citizenship with Bangladesh. However, Bangladesh denied she was a citizen, raising concerns about her statelessness.

Begum appealed the decision, but the Special Immigration Appeals Commission (SIAC) ruled in 2020 that the decision was lawful. The Court of Appeal later stated she should return to the UK to appeal effectively. However, in February 2021, the Supreme Court ruled she could not return due to security risks. Now, Begum remains in a Syrian detention camp without UK citizenship, facing ongoing legal and political battles.

The case opens the potential for the UK, subject to the political will of the new government to devote considerable resources for case-by-case investigations, to assess if the Russians who have obtained UK citizenship over the past 24 years, or the length of time Putin has been in power, are in a position to harm UK national security. While positions of influence in the media and politics are obvious starting points, additional routes may include assessing the ability of these individuals to divert considerable resources, whether obtained by them or through family connections (as we know that Russian oligarchs and politicians like to endow their children), which can put them in a position to influence political parties through donations or other means.

The traditional counterargument against hardline sanctions and the active pursuit of Russian elites is that it leaves no room for maneuver when applying pressure and a “carrot and stick” tactic to persuade them to turn on the Kremlin. However, with already ten years of the war in Ukraine and over two years since the large-scale invasion, and few Russians deciding to leave Putin’s embrace, especially among the upper echelons of power, it is time to reconsider if a speculative tactic that has never worked is but a means to hide the swathes of corrupt Russian kleptocrats who now brandish the post-Brexit black UK passport at Heathrow’s passport control.

The views expressed in this opinion article are the author’s and not necessarily those of Kyiv Post.